He also made no mention of an intensifying human rights crackdown in China – described by some as the most severe in decades – that has seen more than 200 lawyers and activists disappeared, detained or interrogated since July.

George Osborne and Chinese vice-president Ma Kai at a signing ceremony in Beijing. Photograph: Andy Wong/EPA

“My message on this trip is that Britain can’t run away from China. Quite the opposite, Britain should run towards China,” Osborne said. “We should be doing more business with China. We should be better connected to the Chinese economy. Our financial institutions should establish proper links. I think that will help China with the important reform and change that it is undergoing, but I also think it is going to help Britain.”

Asked about what US officials have called Britain’s “constant accommodation” of Beijing, Osborne said: “I think it is important that as China grows it rightly takes its place at the top table.”

He also defended Britain’s move to join the Chinese-led Asian Infrastructure Investment Bank earlier this year. “I’m absolutely clear that Britain’s decision to be the first big western nation to sign up as a founding member was not just good for Britain but I think it was good for multilateralism, good for a world where we draw countries together in cooperation, good for Asia because it is going to help bring investment to this continent.”

The chancellor’s five-day visit, which will also involve him travelling to Shanghai, Chengdu and Ürümqi, comes ahead of Chinese president Xi Jinping’s first state trip to London next month.

Xi, who some describe as China’s most authoritarian leader since Mao, will stay at Buckingham Palace with his wife, the singer Peng Liyuan.

Speaking on Monday, after the seventh UK-China Economic and Financial Dialogue in Beijing, vice-premier Ma Kai said Xi’s visit to Britain would be of “milestone significance” for Sino-British ties.

Osborne kicks off China visit vowing to be Beijing's best friend

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Osborne reiterated his vow to make Britain one of China’s best friends. “Our message to China is very clear: we want the UK to be China’s best partner in the west,” he said. “For the UK a key part of our economic plan is precisely to develop our links with these new emerging economies of which of course the outstanding example is China.”

Osborne took no questions about the human rights crackdown in China or Hong Kong’s democracy struggle on Monday, but in an emailed statement to the Guardian he said: “We don’t see a choice between securing growth and investment and raising human rights issues. We do both consistently, and indeed I have done so in meetings here in China.”